Today I am pleased to sign into law S. 738, the "Amtrak
Reform and Accountability Act of 1997." This Act represents
the first Amtrak reauthorization since 1992 and the most
comprehensive restructuring of Amtrak since the early 1980s.
Amtrak is a significant component of our national
transportation services in densely populated corridors, such
as the northeast; on medium- and short-haul routes; and on
trans-continental routes linking cities across the Nation.
In many areas of rural America it is the only alternative to
the automobile. With the enactment of this legislation, we
have the opportunity to set Amtrak on a course to continue
these services into the 21st Century.

Amtrak has entered a critical stage in its existence. Over
the past several years, Amtrak has restructured its operations
and streamlined its approach to inter-city rail passenger
service. It has improved its organization and created separate
strategic business units that are better able to respond to
customer needs. It has also significantly reduced its need for
Federal operating subsidies. Today, Amtrak recovers a higher
percentage of its operating costs from fares -- 85.1 percent --
than any other passenger or commuter railroad in America, and
higher than the rail systems in France and Germany. This Act
will allow Amtrak to build upon this progress.

With this Act, Amtrak will now be able to access the $2.3
billion capital account created in the Taxpayer Relief Act of
1997. With these funds, Amtrak will be able to make many
needed capital improvements, including replacing its aging car
fleet, upgrading its tracks, and rehabilitating stations and
maintenance facilities nationwide. With these improvements in
place, Amtrak will be able to attract new customers and better
serve existing customers. The implementation of new high-speed
operations in the northeast corridor between Boston and
Washington is a key part of this greatly improved service.

This Act will also free Amtrak to operate in a more
businesslike manner by repealing a number of outdated
requirements that hampered its ability to operate more like a
private entrepreneurial corporation. In particular, S. 738
frees Amtrak to adjust its route structure to meet demand and
to respond to competition rather than to congressional
directive.

The Act also addresses certain labor relations issues by
directing that these issues be negotiated by Amtrak and its
unions through collective bargaining, rather than by statute.
In this respect, it carries forward the spirit of the
reform-oriented labor agreement recently agreed to by Amtrak
and one of its unions.

This Act calls for the creation of an Amtrak Reform Council
that will bring together individuals with expertise in the
fields of corporate management, finance, rail and other
transportation operations, labor, economics, and law to assist
Amtrak in identifying how to operate more efficiently and
effectively.

As a result of these changes, we can all look forward to
better rail service. I recognize that this Act represents a
compromise of a number of competing concerns and competing
visions for Amtrak and its future. I want to compliment the
Senators and Representatives who devoted many hours to
developing this needed legislation. I also want to commend
the many individuals in the Department of Transportation and
other Federal agencies who contributed to the development of
this Act.